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Monday, November 17, 2014

GBP-USD Technical Analysis (17 Nov 2014)

Stochastic Settings:- Period = 5 | Average Period Fast = 7 | Average Period Full =7

Bollinger Bands Settings:- Average = 20 | Standard Deviation = 2

Date: 17 November 2014

Time: 10:51 PM (+8 GMT)

GBP-USD

Technical.Indicators

4 Hourly

Daily

Weekly

Monthly

MACD

DOWN

DOWN

DOWN

DOWN

Full Stochastic

DOWN

DOWN

DOWN

DOWN

Bollinger Bands

N/A

N/A

N/A

N/A

Chart Formation

N/A

N/A

N/A

N/A

Market Direction

DOWN

DOWN

DOWN

DOWN

Market Comments

Major Downtrend

Technically it's very obvious to see the GBP-USD is going for major downtrend as all indicators are synced downwards direction with the expected resistance target at 1.5533 and 1.5408 on the weekly time frame. So sentiment of the majority traders must be significantly bearish, this is backed by the chart head and shoulder formation on the weekly time frame.

However on the fundamental perspective it's very difficult to determine the market as there high impact economic data on Tuesday, Wednesday, and Thursday from the UK. This may result in high level of turbulence along the way downwards. Don't get caught in the spiky surprise. Apart from that there are also high impact economic data which have strong co-relation with the pound sterling for example Euro, AUD, and NZD which could help to lift up the GBP if they are producing good data against the USD.

In summary technically the GBP-USD definitely bearish but beware of the fundamental factors that caused the high turbulence. Don't get caught at the oversold/overbought zone where you will have the risk of long wait or lose money big time.